Laws, Policies and Consequences

The law of unintended consequences is as merciless as the law of gravity. This article lists three instances where the law of unintended consequences caused supposedly well-intentioned laws to turn into nightmares, especially for those of modest income.

The Fast Food Franchise Bright Idea

The book recounts the story about the federal Small Business Administration setting up a program to help residents of inner cities become entrepreneurs. The SBA would guarantee loans to start business franchises. Dunkin’ Donuts stepped right up to help promote the program, followed by McDonald’s and Burger King. Once fast food companies realized inner cities had become a gold mine, they leveraged their prospects with advertising, and inner cities residents became faithful consumers of fast foods.

The unfortunate unintended consequence is unhealthy obesity.

The War on Terror and the Rise of Terrorism

9/11 was a tragedy where we experienced in real time, in U.S. soil, the death of almost 3,000 civilians. Therefore, the hurt and anger that resulted in the war in Afghanistan, and later Iraq, could be understood. George Bush sent troops to Afghanistan to clean out terrorist camps, and to Iraq to eradicate supposed weapons of mass destruction.

The unfortunate unintended consequence is well described by this paragraph,

What the US tends to forget, or intentionally ignores, is that armed reactionary groups like ISIS are born out of the destabilization created by Western military intervention … [H]ostile anti-American resistance groups gain momentum, sympathy and legitimacy from the actions carried out by Western forces. Foreign Policy Journal, 2015

Fighting Climate Change

Everybody wants clean air, clean water, and the absence of extreme climate. Therefore, to ensure these graces, legislators have done what legislators tend to do – pass laws. The laws of preference favor transit-oriented development (TOD) intended to reduce automobile miles traveled and greenhouse gas emissions.

TOD policies set strict urban-growth boundaries, establish vast conservation areas where development is not allowed, and encourage development only along transit corridors. Under such plans, density is promoted as desirable not only as means of reducing greenhouse gas emissions, but also as an engine of growth and, therefore, tax generation.

The unsurprising unintended consequence of transit-oriented policies is unaffordability of real estate. As places to build shrink and neighborhoods resist high density, supply of housing decreases and prices for renting or buying a roof over one’s head go up.

California, a state that boasts its leadership in controlling climate change and forcefully promotes transit-oriented policies has chased away its working poor and its middle class, who cannot afford astronomically housing costs.

The problem is that high-density housing–that is, mid-rise and high-rise housing–costs 50 to 68 percent more, per square foot, to build than low-density housing. If California really wants to build housing that is affordable to low-income people, it needs to build more low-density housing. To build that, it needs to open up land that has been off-limits to development because it is outside of urban-growth boundaries. Will Density Make Housing Affordable? New Geography, March 2018.

Examples Abound

Government policies apparently implemented in good faith can easily turn sour and result in unanticipated harm. Who can forget the mass displacement of residents in the 1950s -1960s in the name of urban development? Who can ignore the cost of health insurance after the Affordable Care Act? How many families have been torn apart and how many children have been caught in the cross fire of the war on drugs? But these are all subject for future articles on the Just Vote No Blog.

Therefore, regardless of your party affiliation or political leanings, proceed with caution in supporting sweeping legislation, regulation, or executive orders at all levels of government.